Saving for retirement is a global problem. On average, people expect retirement to last for 18 years, but only estimate their savings to last for ten years, according to the latest Future of Retirement report from HSBC, which is based on research from more than 15,000 people across 15 countries. The eight-year difference between retirement longevity and savings is especially concerning since health and other related costs typically rise in the second half of retirement.
Simon Williams, HSBC Group Head of Wealth Management, explains, “Many people are still not saving adequately for old age – and the shortfall has got worse. The economic downturn has affected the level of retirement savings for one in four people, storing up problems for the decades to come. Many of these people expect to rely on the state. This creates problems for governments. It will put an unsustainable strain on public healthcare, transport and housing provision.”